Carbon Capture, Utilization, and Storage Market

The carbon capture, utilization, transportation and storage market is projected to grow from USD 3.0 billion in 2022 and is projected to reach USD 14.2 billion by 2030, at a CAGR of 21.5%. Over the world, the carbon capture, utilization, transportation and storage market is expanding significantly, and during the forecast period, a similar trend is anticipated.

The demand for carbon capture, utilization, transportation and storage has been driven by several factors, including the need to increase the efficiency of operations, reduce maintenance costs, and enhance safety. The major applications of carbon capture, utilization, transportation and storage include construction, transportation, wind energy, aerospace and defense, marine, electrical and electronics, and others.

In the construction industry, carbon capture, utilization, transportation and storage is used in the form of panels, insulation, and roofing materials, whereas carbon capture, utilization, transportation and storage is used to manufacture lightweight and durable parts for automobiles, trains, and aircraft in the transportation industry.

In the wind energy industry, carbon capture, utilization, transportation and storage is used to manufacture wind turbine blades. In the aerospace and defense industry, carbon capture, utilization, transportation and storage is used to manufacture various components, such as radomes, fairings, and wingtips. In the marine industry, carbon capture, utilization, transportation and storage is used to manufacture boats, yachts, and other watercraft. In the electrical and electronics industry, carbon capture, utilization, transportation and storage is used to manufacture circuit boards, electrical insulation materials, and other components.

Attractive Opportunities in Carbon capture, utilization, transportation and storage Market Trends

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Carbon capture, utilization, transportation and storage Market Dynamics

Driver: Rising environmental awareness to increase natural gas demand

Stringent environmental norms and regulations are also boosting the demand for carbon capture, utilization, and storage. The most important energy fuel sources prevailing globally are gasoline, diesel, petroleum products, and natural gas. The exploration and production of these fuels are harmful and risk the environment. Still, natural gas is considered the alternative fuel for sustainable development as it reduces carbon emissions, slows down global warming, and lessens GHG emissions. In order to minimize the risks associated with the usage of gasoline or diesel as a fuel and promote the usage of natural gas, the US government has set up various rules and regulations. Countries with major natural gas reserves are looking at the advantages of using carbon capture, utilization, and storage, resulting in lower carbon emissions.

China and the US, countries with a major contribution to the global GHG emissions, entered into a collaboration in 2010—The US-China Energy Cooperation Program. This global climate agreement includes action plans on clean energy, energy efficiency, and climate change. According to the Energy Information Administration and Institute of Energy Economics Japan, world energy consumption will increase by 50% by 2035, leading to an increased demand for carbon capture, utilization, and storage.

Restraint: Safety concerns over storage techniques and sites to restrict the market growth

The leakage of CO2 is one of the major issues while storing CO2 under the Earth’s surface. The leakage of CO2 can result in the contamination of water, acidification of soils, alteration of groundwater, and cryogenic burns. Hence, proper site selection for CO2 storage is the major factor for determining the magnitude and likelihood of risks. CO2 injected underground can later break through multiple channels, including geological features, such as fractures in the rock. Another problem can be leakage through wells. Both active and abandoned wells can be ways of CO2 leakage and can take the form of either well blowouts or continuous leakage.

Continuous leakage is a slow leakage due to improper well construction, such as cement degradation or failures in casing and well blowouts that are generally abrupt events arising when the pressure control fails. Though well blowout is a rare incident, it can result in rapid leakage and could have serious consequences to the environment, potentially triggering the death of humans and animals. There is a possibility for CO2 to leak from storage points as well. Such leakage could occur if the seal at the point of the storage fails, which will result in the release of sequestered CO2.

Opportunity: Increasing project announcements in Asia Pacific region to create lucrative opportunities for the market

Current and upcoming projects of carbon capture, utilization, and storage in the Asia Pacific region have created opportunities for market players. China and Australia are the early adopters of carbon capture, utilization, and storage in the region. Other than Australia and China, South Korea and India also focus on adopting carbon capture, utilization, and storage.

South Korea has already taken a step toward carbon capture, utilization, and storage in the Korea CCS 1&2 project, which is currently in an early developmental stage. Moreover, in 2016, India initiated the operation of carbon capture and utilization system, which was capable of capturing 60,000 tons of C02 per year from coal-fired power plants. Furthermore, various projects in China, including CHEERS (Chinese-European Emission-Reducing Solutions), Huaneng GreenGen, and Sinopec Qilu Petrochemical, are expected to start in the coming few years.

Challenge: Reducing carbon capturing cost to be a major challenge for market growth

Investments in product innovation and technology development are of utmost importance to overcome current technical limitations. Various companies are working on developing new solutions and investing significant resources to intensify R&D initiatives. Carbon capture, utilization, and storage system can be installed in new energy utilization plants or retrofitted to existing plants. If CO2 capture is to be introduced rapidly, it needs to be retrofitted to existing plants. However, some complications can hamper this approach. Plants with carbon capture, utilization, and storage retrofits can have site constraints, such as the availability of land for the capture equipment.

In addition to this, the remaining plant life may not be able to justify the large expense of installing capture equipment. Also, older plants are likely to have low energy efficiencies, and including a carbon capture system will have a proportionally greater monetary impact on the output. Hence, these factors limit the potential usage of carbon capture, utilization, and storage. It is highly desirable to decrease this cost to expand the current horizon of carbon capture, utilization, and storage.

Solvents & Sorbents technology accounted for the largest market share, in terms of value and volume

The solvents & sorbents technology dominates the carbon capture, utilization, and storage market. Currently, this technology is majorly used by the oil & gas, chemical, and power generation industry. This technology accounted for 43.9% share, in terms of volume, of the overall market in 2022. It is followed by chemical looping technology, which had a market share of 37.9%, in terms of volume, in 2022. Membrane and other technology possess relatively low market share both in terms of value and volume.

Capture service segment dominated the carbon capture, utilization, and storage market, in terms of value and volume

Capture holds the biggest share in the CCUS market. Carbon capture is the first stage of the CCUS process and involves capturing CO2 from its emission source. It can be applied to any large-scale emission process, including coal-fired power generation plants; gas and oil production; and manufacturing industries, such as cement, iron, and steel. There are three main methods to capture CO2 for industrial and power plant applications: post-combustion, pre-combustion, and oxy-fuel, Direct Air Capture, and Bio Energy CCS.

Oil & gas end-use industry segment dominated the carbon capture, utilization, and storage market, in terms of value and volume

The oil & gas industry dominates the carbon capture, utilization, and storage market. This is due to the industry's high initial adoption rate in the early days. The trend is expected to continue during the forecast period as the oil & gas industry is one of the major sources of carbon emissions. Power generation is expected to be the fastest-growing end-use industry for the carbon capture, utilization, and storage market. The adoption of carbon capture, utilization, and storage technology in the power generation industry is booming in all regions.

North America held the largest market share in the carbon capture, utilization, and storage market

North America led the carbon capture, utilization, and storage market, in terms of value, in 2021 and is projected to register a CAGR of 21.5% between 2023 and 2030. The growth of the region's market is driven by the early adoption of CCUS technology in the region and the execution of various large-scale projects in the US and Canada. Major projects such as the Petra Nova Carbon Capture Project (US) and Boundary Dam CCS Project (Canada) supported the market in North America.  

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Key Market Players

The carbon capture, utilization, transportation and storage market is dominated by a few globally established players such as Fluor Corporation (US), ExxonMobil Corporation (US), Linde PLC (UK), Royal Dutch Shell (Netherlands), Mitsubishi Heavy Industries Ltd., (Japan), JGC Holdings Corporation (Japan), Schlumberger Ltd., (US), Aker Solutions (Norway), Honeywell International (US), Equinor ASA (Norway) among others, are the key manufacturers that secured major contracts in the last few years. Major focus was given to the contracts and new product development due to the changing requirements across the world.

These companies are pursuing a variety of inorganic and organic strategies in order to gain a foothold in the carbon capture, utilization, transportation and storage market. The research includes a detailed competitive analysis of these key players in the carbon capture, utilization, transportation and storage market, including company profiles, recent developments, and key market strategies.

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Scope of the Report

The study categorizes the carbon capture, utilization, transportation and storage market based on Glass type, Product type, Application, and Region.

By Service:

• Capture
• Transportation
• Utilization
• Storage

By Technology:

• Chemical Looping
• Solvents & Sorbents
• Membranes
• Others

By End-User:

• Oil & Gas
• Power Generation
• Chemicals & Petrochemicals
• Cement
• Iron & Steel
• Others

By Region:

• North America
• Asia Pacific
• Europe
• South America
• Middle East & Africa

Recent Developments

• In August 2022, Shell PLC took over Sprang Energy group, which is a renewable energy company aiming to lower carbon emissions. This acquisition is aimed at boosting the carbon capture and storage potential of Shell PLC and improving its market share.
• In June 2022, ExxonMobil Corporation, Shell & Guangdong Provincial Development & Reform Commission will work together to evaluate the potential for carbon capture and storage project at Dayawan petrochemical industrial park in Huizhou, China.
• In November 2021, ExxonMobil Corporation and Petronas signed a memorandum of understanding, will jointly explore potential carbon capture and storage project in Malaysia.
• In May 2020, Royal Dutch Shell, together with Equinor ASA (Norway) and TotalEnergies SE (France), invested USD 682.3 million in the Northern Lights carbon capture and storage (carbon capture, utilization, and storage) project in Norway. With this investment, the trio intends to set up a joint-venture company.
• In November 2019, ExxonMobil Corporation and FuelCell Energy (US) signed a new, two-year expanded joint-development agreement for USD 60 million to improve carbonate fuel cell technology further to capture CO2 from industrial facilities. The agreement focuses on efforts for optimizing the core technology, overall process integration, and large-scale deployment of carbon capture solutions.

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